1. Summary Information
|
Country |
India |
||
|
Company Name |
POSCO INDIA
DELHI STEEL PROCESSING CENTRE PRIVATE LIMITED |
Principal Name 1 |
Mr. Dae Ho Shin |
|
Status |
Moderate |
Principal Name 2 |
Mr. Choi Ho Kun |
|
Registration # |
05-041978 |
||
|
Street Address |
Plot No.193, Sector 4, HSIIDC, Bawal-123501, Haryana |
||
|
Established Date |
18.01.2007 |
SIC Code |
-- |
|
Telephone# |
91-1284-308342 / 308300 |
Business Style 1 |
Processing |
|
Fax # |
91-1284-308343 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Steel Coils |
|
|
# of employees |
Not Divulged |
Product Name 2 |
Sheets |
|
Paid up capital |
Rs.777,362,000/- |
Product Name 3 |
-- |
|
Shareholders |
Foreign holdings
100.00% |
Banking |
Shinhan Bank |
|
Public Limited Corp. |
No |
Business Period |
7 Years |
|
IPO |
No |
International Ins. |
- |
|
Public Enterprise |
No |
Rating |
B (34) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Holding
Company |
South Korea |
POSCO Company Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2013 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
2,216,573,000 |
Current Liabilities |
1,663,493,000 |
|
Inventories |
2,028,109,000 |
Long-term Liabilities |
2,915,305,000 |
|
Fixed Assets |
1,313,391,000 |
Other Liabilities |
60,755,000 |
|
Deferred Assets |
000 |
Total Liabilities |
4,639,553,000 |
|
Invest& other Assets |
000 |
Retained Earnings |
141,158,000 |
|
|
|
Net Worth |
918,520,000 |
|
Total Assets |
5,558,073,000 |
Total Liab. & Equity |
5,558,073,000 |
|
Total Assets (Previous Year) |
4,621,445,000 |
|
|
|
P/L Statement as of |
31.03.2013 |
(Unit: Indian Rs.) |
|
|
Gross Income
|
6,930,942,000 |
Net Profit |
(178,627,000) |
|
Gross Income
(Previous yr)/ |
5,624,998,000 |
Net Profit(Prev.yr) |
(181,617,000) |
MIRA INFORM REPORT
|
Report Date : |
19.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
POSCO INDIA DELHI STEEL PROCESSING CENTRE PRIVATE LIMITED
(w.e.f.29.04.2008) |
|
|
|
|
Formerly Known
As : |
POSS DELHI STEEL PROCESSING CENTRE PRIVATE LIMITED |
|
|
|
|
Registered Office : |
Plot No.193, Sector 4, HSIIDC, Bawal-123501, Haryana |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation : |
18.01.2007 |
|
|
|
|
Com. Reg. No.: |
05-041978 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.777.362
Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
U27310HR2007PTC041978 |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business : |
The Company is into the business of processing of steel coils/ sheets for
automotive, home appliances and others steel consuming industries. |
|
|
|
|
No. of Employees
: |
Information declined by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
B (34) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 3680000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a subsidiary of “Posco Company Limited”. Korea. It is an
established company having moderate track. The financial profile of the company has been moderated as the company
is consecutively incurring losses since F.Y. 2012 which has further
deteriorated the position of reserves. Further the management seems to be highly relied on debt which may act
as a threat to the liquidity position during 2013. However, trade relations appear to be fair. Business is active.
Payment terms are reported as slow but correct. In view of support from its reputed Korean holding company, the
subject can be considered for business dealings with slight caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India’s current account deficit for the fiscal third quarter ended
September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product
from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in
exports and moderation in gold imports. Manufacturing activity and new orders
in India showed their strongest growth in a year in February. The news comes as
a relief after data showed Asia’s third largest economy grew by a
slower-than-expected 4.7 % annually in the three months through December. The
HSBC Manufacturing Purchasing Managers’ Index which gauges the business
activity of India’s factories but not its’ utilities, rose to 52.5 in February,
its highest in a year from 51.4 in January. Overall new orders for factory
goods which rose to a one-year high of 54.9 contributed to the surge. China has
emerged as India’s biggest trading partner in the current financial year
replacing the United Arab Emirates and pushing it to the third spot.
India-China trade has reached $49.5 billion with a 8.7 % share in India’s total
trade. The US comes second at $46 billion with 8.1 % share during the first
nine months of the current financial year.
The Reserve Bank of India has granted an additional nine months to the
public to exchange currency notes printed before 2005 including Rs 500 and Rs
1,000 denominations, pushing the deadline to January 1, 2015. A day before
dates for the Lok Sabha polls were announced, the government decided to hike
interest rates on fixed deposit schemes offered by post offices up to 0.2 per
cent. The new rates will be effective April, 1. The Supreme Court will resume
hearing on March, 11 Nokia’s appeal against a ruling over transferring
ownership of its local mobile phones plant which is the subject of a tax
dispute to Microsoft Corp.
In the last days of the current Government, another scam has surfaced.
The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s
contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The
Central Bureau of Investigation will look into allegations that over $80
million was paid in kickbacks in a deal signed in 2011. India has asked Boeing
Co. to find a solution for problems with state-owned Air India’s 787
Dreamliners. The aircraft has experienced a series of malfunctions since its
debut in 2011.
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED BY
|
Name : |
Ms. Minal |
|
Designation : |
Account Department |
|
Contact No.: |
91-1284-308342 |
|
Date : |
05.04.2014 |
LOCATIONS
|
Registered
Office: |
Plot No.193, Sector 4, HSIIDC, Bawal-123501, Haryana, India |
|
Tel No.: |
91-1284-308342 / 308300 |
|
Fax No.: |
91-1284-308343 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate / Marketing Office: |
10th Floor, BPTP Park Centra Building Sector 30, Gurgaon-122002, Haryana,
India |
|
Tel No.: |
91-124-4164200 |
|
Fax No.: |
91-124-4164209 |
|
|
|
|
Factory : |
Suite No. 445, Ashok Hotel, Chanakyapuri, New Delhi-110021, India |
|
Tel No.: |
91-11-24673680 |
|
Mobile No. : |
91-9810238282 (Mr. Doh Moo Sang) |
|
Fax No.: |
91-11-24673688 |
|
E-Mail : |
|
|
Website : |
|
|
Location : |
Owned |
DIRECTORS
AS ON 30.09.2013
|
Name : |
Mr. Seo ran Yu |
|
Designation : |
Managing Director |
|
Date of Birth/Age : |
21.02.1968 |
|
Date of Appointment : |
04.04.2013 |
|
DIN No.: |
06546241 |
|
|
|
|
Name : |
Mr. Dae Ho Shin |
|
Designation : |
Whole Time Director |
|
Address : |
MG Road, GUrgaon – 122001, Haryana |
|
Date of Birth/Age : |
02.02.1970 |
|
Date of Appointment : |
31.07.2010 |
|
DIN No.: |
03147809 |
|
|
|
|
Name : |
Mr. Choi Ho Kun |
|
Designation : |
Director |
|
Address : |
B-2, 2nd Floor, Meera Cooperative Suit, Plot NO.1 and 2,
Ishwar Nagar, Mathura Road, New Delhi – 110065, Delhi, India |
|
Date of Birth/Age : |
04.11.1967 |
|
Date of Appointment : |
29.11.2010 |
|
DIN No.: |
03348479 |
|
|
|
|
Name : |
Mr. Kim Jeoungsu |
|
Designation : |
Director |
|
Address : |
Hyundai Park Ville, 1002-1803 577, Gwangjin – Dong, Gwangjin – Gu,
Seoul Metro Korea - 138220 |
|
Date of Birth/Age : |
01.11.1963 |
|
Date of Appointment : |
01.09.2010 |
|
DIN No.: |
03294568 |
|
Name : |
Mr. Yoon Jihwan |
|
Designation : |
Director |
|
Date of Birth/Age : |
04.07.1964 |
|
Date of Appointment : |
11.09.2013 |
|
DIN No.: |
06685323 |
KEY EXECUTIVES
|
Name : |
Mr. Pravin Kumar Chourasia |
|
Designation : |
Secretary |
|
Address : |
213, Sector 31, GUrgaon – 122001, Haryana, India |
|
Date of Birth/Age : |
17.04.1975 |
|
Date of Appointment : |
11.11.2009 |
|
Pan No.: |
AGYPC4200C |
|
Name : |
Ms. Minal |
|
Designation : |
Account Department |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2013
|
Names of Shareholders |
|
No. of Shares |
|
Posco Company Limited, South Korea |
|
51616843 |
|
Shinhan Bank, South Korea |
|
3806810 |
|
Samsung Corporation Company Limited, South Korea |
|
14458935 |
|
Posco South Asia Company Limited, Bangkok |
|
7773621 |
|
|
|
|
|
TOTAL
|
|
77736209 |
AS ON 30.09.2013
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
100.00 |
|
|
|
|
|
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company is into the business of processing of steel coils/ sheets
for automotive, home appliances and others steel consuming industries. |
PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Cold Rolled Steel, Hot Rolled Steel and Stainless Steel |
MT |
100000 |
100000 |
82174 |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management. |
|
|
|
|
Bankers : |
Shinhan Bank, 3rd Floor, D-6 South Extension Part –
II, Ring Road, New Delhi – 110049,
India |
|
|
|
|
Facilities : |
--- |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S.R. Batliboi and Company LLP Chartered Accountants |
|
Address : |
Golf View Corporate Tower, Sector 42, Sector Road, Gurgaon-122002,
Haryana, India |
|
PAN No: |
ABSFS4151K |
|
|
|
|
Holding Company : |
POSCO Company Limited, South Korea |
|
|
|
|
Fellow Subsidiaries : |
|
CAPITAL STRUCTURE
AS ON 30.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
77800000 |
Equity Shares |
Rs.10/- each |
Rs.778.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
77736209 |
Equity Shares |
Rs.10/- each
|
Rs.777.362
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
|
|
31.03.2013 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
|
777.362 |
|
(b) Reserves & Surplus |
|
|
141.158 |
|
(c) Money received against
share warrants |
|
|
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
|
|
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
|
918.520 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
|
319.766 |
|
(b) Deferred tax liabilities
(Net) |
|
|
0.000 |
|
(c) Other long term
liabilities |
|
|
0.000 |
|
(d) long-term provisions |
|
|
58.484 |
|
Total
Non-current Liabilities (3) |
|
|
378.250 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
|
2,595.539 |
|
(b) Trade payables |
|
|
1,593.386 |
|
(c) Other current liabilities |
|
|
70.107 |
|
(d) Short-term provisions |
|
|
2.271 |
|
Total
Current Liabilities (4) |
|
|
4,261.303 |
|
|
|
|
|
|
TOTAL |
|
|
5,558.073 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
|
1,308.394 |
|
(ii) Intangible Assets |
|
|
4.997 |
|
(iii) Capital work-in-progress |
|
|
0.000 |
|
(iv) Intangible assets under
development |
|
|
0.000 |
|
(b) Non-current Investments |
|
|
0.000 |
|
(c) Deferred tax assets (net) |
|
|
0.000 |
|
(d) Long-term Loan and Advances |
|
|
80.849 |
|
(e) Other Non-current assets |
|
|
0.000 |
|
Total
Non-Current Assets |
|
|
1,394.240 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
|
0.000 |
|
(b) Inventories |
|
|
2,028.109 |
|
(c) Trade receivables |
|
|
1,126.739 |
|
(d) Cash and cash equivalents |
|
|
551.307 |
|
(e) Short-term loans and
advances |
|
|
446.379 |
|
(f) Other current assets |
|
|
11.299 |
|
Total
Current Assets |
|
|
4,163.833 |
|
|
|
|
|
|
TOTAL |
|
|
5,558.073 |
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
777.362 |
556.740 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
319.785 |
247.024 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
1097.147 |
803.764 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
0.000 |
0.000 |
|
|
2] Unsecured Loans |
|
2038.169 |
1742.264 |
|
|
TOTAL BORROWING |
|
2038.169 |
1742.264 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
31.913 |
|
|
|
|
|
|
|
|
TOTAL |
|
3135.316 |
2577.941 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
712.673 |
748.233 |
|
|
Capital work-in-progress |
|
0.000 |
2.599 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
53.118 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
1976.430
|
1618.750
|
|
|
Sundry Debtors |
|
883.983
|
722.041
|
|
|
Cash & Bank Balances |
|
525.062
|
186.228
|
|
|
Other Current Assets |
|
9.298
|
1.774
|
|
|
Loans & Advances |
|
460.881
|
428.818
|
|
Total
Current Assets |
|
3855.654
|
2957.611
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
1389.101
|
323.145
|
|
|
Other Current Liabilities |
|
49.074
|
715.893
|
|
|
Provisions |
|
47.954
|
91.464
|
|
Total
Current Liabilities |
|
1486.129
|
1130.502
|
|
|
Net Current Assets |
|
2369.525
|
1827.109
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
3135.316 |
2577.941 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Gross Income |
6930.942 |
5624.998 |
5063.087 |
|
|
|
Other Income |
NA |
NA |
NA |
|
|
|
TOTAL |
NA |
NA |
NA |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material and other direct costs |
|
|
|
|
|
|
Personnel Expenses |
|
|
|
|
|
|
Administrative and other Expenses |
|
|
|
|
|
|
Selling and distribution Expenses |
|
|
|
|
|
|
Increase / Decrease in stock |
|
|
|
|
|
|
TOTAL |
NA |
NA |
NA |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
|
|
|
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
(64.708) |
(211.528) |
452.711 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
60.802 |
57.952 |
45.530 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX |
(125.510) |
(269.480) |
407.181 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
53.117 |
(87.863) |
138.178 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX |
(178.627) |
(181.617) |
269.003 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
65.407 |
247.024 |
(21.979) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(113.22) |
65.407 |
247.024 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(2.30) |
(3.23) |
4.83 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(2.26)
|
(5.90)
|
10.98
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.14)
|
(0.25)
|
0.50
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
3.17
|
1.85
|
2.17
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.98
|
2.59
|
2.61
|
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Gross Income |
5,063.087 |
5,624.998 |
6,930.942 |
|
|
|
11.098 |
23.217 |
PROFIT MARGIN
|
Profit
Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Gross Income |
5,063.087 |
5,624.998 |
6,930.942 |
|
Profit After Tax |
269.003 |
(181.617) |
(178.627) |
|
|
5.31% |
(3.23%) |
(2.58%) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by
Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth of Proprietor/Partner/Director, if available |
Yes |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
UNSECURED LOAN
|
Particulars |
As
on 31.03.2013 [Rs.
in Millions] |
As
on 31.03.2012 [Rs.
in Millions] |
|
Long term
borrowing |
|
|
|
Loan from Bank |
|
|
|
External Commercial Borrowing |
319.766 |
0.000 |
|
|
|
|
|
Short term
borrowing |
|
|
|
Working Capital
Loan |
|
|
|
From Bank |
2346.513 |
2038.169 |
|
Other loans and
Advances |
249.026 |
0.000 |
|
|
||
|
TOTAL
|
2915.305 |
2038.169 |
Notes:
Long term
borrowing
External
commercial borrowing carries interest @ LIBOR plus 2.80%. The loan is repayable
in 5 equal half yearly installment of USD 1,300,000 after 3 years from the date
of its origination, viz., 30 June 2012. The loan has been availed against
letter of comfort provided by Posco Company Limited, South Korea, and the
holding company.
Short term borrowing
(i) Buyers credit
loan carries interest @ 1.50% to 2.50% p.a.
(ii) *Availed
against letter of comfort provided by Posco Company Limited, South Korea, the
holding company.
(iii) #Buyers
credit loan from others represent amount due to Posco Investment Company
Limited., Hong Kong, a fellow subsidiary.
Note:
The registered office of the company has been
shifted from Suite No. #445, Ashok Hotel, Chanakyapuri, New Delhi – 110021,
Delhi, India to the present address w.e.f. 22.11.2010.
REVIEW OF OPERATION:
During the year,
the Company’s turnover increased to Rs. 7852.200 millions as against Rs.
6320.900 millions of the previous year, thereby registering an increase of
24.22% in turnover through increase in sales volume in domestic market,
improved product mix and buoyancy in steel market.
The sales volume
during financial year 2012-13 was 116,525 against 98,965 MTs for the financial
year 2011-12, an increase of 17.74% over previous year.
The Profit Before Tax
(PBT) for the current year stood negative at Rs. (12.55 Crores) against
negative of Rs. (269.500) millions in the previous year, registering a decrease
in the Loss before Tax of 53.43%. The key reasons for the continued losses is
fluctuation in Foreign Exchange due to turmoil in the global economy.
The Company has
taken following corrective action to limit the foreign exchange and other
losses:
i) Foreign Exchange Loss: The Company
procures its raw material majorly through import. Due to turmoil in the global
economy the rupee is weakening against dollar. The Company has exercised its
due diligence and limited the loss by adopting the following measures:
1. Framing of
Customer Credit and Foreign Exchange Policy.
2. Aggressive
Forward Trading and risk minimization.
3. Daily business
update and Daily Quick report.
4. Close monitor
of macro-economic factors affecting the market.
5. Foreign
Exchange Reports at different events in the national and international
business.
ii) Insurance Cost: The Marine Insurance
premium rate has been reduced to 0.16% for financial year 2013-14 from 0.18% in
the previous year. The Office at Kandla Port has been handed over to
POSCO-ISDC, for efficient management and monitoring of the import clearances
and safe transportation from port to plant at Bawal. Strict instruction and
updated guidelines has been issued to the transporters to reduce the transit
loss.
Evaluation system
for transporters has been introduced to control the material handling. Thereby
looking for continuous reduction in the Premium Cost in years to come. Other
corrective measures for the system up gradation such as monthly meeting to
review the operation for the month, Daily quick report to alarm the concerned
in advance and quarterly internal audit system is continued. The Company
continued its thrust on Cost Control Management. Cost control measures focused
on reduction in usage of per unit raw material, improvement in yields and
techno-economic parameters, reduction in energy consumption and control in administrative
expenditures etc.
The Board is
hopeful that the performance of the Company will improve in year 2013-14.
NEW PLANT
In line with the
expansion spree, the Company has expanded its service center facility with the
establishment of Plant - II. The New Plant has increased the Customer Base with
establishment of Blanking Line, CTL-GO, Slitter and Mini Shear. With Blanking
Line in Plant, now the Company can cater the needs of Automotive and White
Goods Customers, without any hindrance in terms of size or shape. With these
facilities in place, now the Company can particularly target sectors like -
Automotive, Two Wheelers and Electrical transformer industry.
In order to
accommodate the changes and enhanced production various considerable decisions
are being taken internally in the Company. The Company expects a rapid and
favorable growth with the these new
facilities.
MARKETING
The Company
continues to enjoy support from all its valuable customers during the year
2012-13, due to its excellent Customer Relationship Management, delivery terms
and quality of the products manufactured by the Parent Company Viz. POSCO
Company Limited, Republic of Korea. After 6 years of operation the Company has
been able to establish itself as a critical component in the supply chain of
all the customers. The POSCO brand is well entrenched in Northern part of the
Indian market and enjoys premium over local steel suppliers. The sales
composition of the Company is enlarged, due to its focused approach towards
Value Added Steels. Focusing on the principle of One stop shop for all the steel requirements,
the Company has expanded its operations in HRPO-High tensile steels Galvanised
steels, Cold Rolled-Grain Oriented steels and Cold Rolled-Non grain Oriented
steels?. This strategy is helping the Company in safeguarding the turnover
against topsy-turvy of any specific market segment and also in enhancing the
profitability. The Company has already initiated long term business prospects
with eminent partners like Honda, Panasonic, LGEIL, which will definitely give
a reference edge to the Company, in terms of reliability and fairness of
transactions. Moreover with the emergence of POSCO Electrical Steel (CRNGO
plant) and POSCO Maharashtra (CRCA plant), the Company looks forward for a
brighter future in terms of stable supplies and stable business developments.
All these development plans are being monitored on regular basis, with vigor of
achievement.
FINANCE
The Company has standardized
Finance Manual, Customer Credit and Foreign Exchange Policy for better
regulation of financial affairs of the Company. The Company has been focusing
on improved execution and negotiation of better terms with the Customers and
Vendors and also tightening the collection follow-up process. These measures
have helped the Company in significant reduction in overdue receivable and to
enhance the working capital, resulting in cash surplus. The Company is
confident to have adequate funding to finance its working capital requirements
as well as future growth needs.The volatility in foreign currency rates may
impact the profitability of the Company to the extent of its exposure to the
International business and specific currencies. However the Company has been
able to use the internal hedge provided to it due to imports for domestic
market and has demonstrated resilience to impact of increased level of
volatility over last 2 years. The Company also takes forward covers selectively
to protect against movement in foreign currency rates.
Shared Service
Centre: The Company along with the other processing centers have decided to
inculcate the concept of Shared Service Centre. This is introduced to
consolidate the Treasury and Accounting functions of all the Service Centers in
India and thereby reducing the cost and enhancing the efficiency. The Cash
Pooling of funds between the Service Centre, will also reduce the cost of
funds.
VIEW INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10144282 |
26/12/2013 * |
98,766,800.00 |
SHINHAN BANK |
3RD FLOOR D-6
SOUTH EXTENSION PART-II, RING ROAD, |
B92948058 |
* Date of charge modification
FIXED ASSETS:
·
Land
·
Factory Building
·
Plant and Machinery
·
Computer
·
Furniture and Fixtures
·
Vehicles
·
Office Equipments
·
Air Conditioners
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.38 |
|
UK Pound |
1 |
Rs.101.63 |
|
Euro |
1 |
Rs.83.57 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
SNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
---- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
34 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.